Friday's unexpected decline in consumer spending is somewhat disconcerting in the wake of the negative GDP revision last week. Consumer purchases dropped 0.1% after climbing 1% in the prior month. That's the first decrease in a year. Adjusting for inflation, spending decreased by the most since September 2009. However, it's way too early to give up on the US economy. First off, the prior month's 1% spending increase was the fastest growth rate in 5 years, so it stands to reason that spending would cool off. Moreover, the biggest spending drop was in household outlays - which include utilities. As the weather warms towards summer temps, utilities spending is going to decline. What's more, personal income climbed by 0.3% in April. As long as incomes continue to rise, it will eventually result in more spending. (VIEW LINK)